Gushiken Yona
Crypto exchange giant Binance on Thursday announced its official return to India, declaring its registration as a reporting entity with the Financial Intelligence Unit (FIU). This move marks a significant milestone for the platform, which had previously faced regulatory hurdles in the country.
“We are pleased to announce that Binance International Limited is officially registered as a reporting entity with the Financial Intelligence Unit – India,” the company said. “This significant milestone underscores our unwavering commitment to upholding the highest standards of compliance, not just in India, but globally.”
The registration paves the way for Binance to fully operate in India, offering its suite of services, including trading, staking, and derivatives, to its Indian user base. However, the company noted that users may be required to undergo account verification again to comply with Know Your Customer (KYC) regulations.
Binance’s journey in India has been a rollercoaster. The exchange entered the market in 2019 by acquiring WazirX, a move that positioned it as a major player in the country’s growing crypto scene.
By bringing WazirX into its ecosystem, Binance didn’t just grow its user base—it connected India’s crypto enthusiasts to global markets, offering them the tools and liquidity to explore the future of finance. However, as Binance was establishing its foothold, India’s regulatory environment began to shift.
The lingering effects of the Reserve Bank of India’s 2018 directive, which severed banking ties with crypto businesses, cast a long shadow. The Supreme Court’s decision to lift the ban in 2020 was a breakthrough, but it marked only the beginning of Binance’s complex journey in India.
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The years that followed tested Binance’s resilience. Navigating the evolving regulatory landscape became a dual challenge—sustaining a growing community while adapting to India’s stringent regulations.
The 2022 introduction of a 30% tax on crypto income and a 1% TDS on transactions sent shockwaves through the market, shrinking trading volumes and dampening the once-vibrant enthusiasm.
By 2022, Binance began to distance itself from WazirX, creating confusion and concern among users. The nature of their relationship was questioned, with Binance clarifying that WazirX’s operations were under the control of Zanmai Labs, an Indian entity. This public rift added another layer of complexity to Binance’s narrative in India.
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Today, Binance continues to operate in India, carrying the lessons of the past few years. The Indian crypto market, rich with potential, remains a challenging battleground.
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YONA GUSHIKEN
Yona brings a decade of experience covering gaming, tech, and blockchain news. As one of the few women in crypto journalism, her mission is to demystify complex technical subjects for a wider audience. Her work blends professional insight with engaging narratives, aiming to educate and entertain.
